The Jakarta Occupancy Office is expected to fall by 4%

KONTAN.CO.ID – JAKARTA . The office occupancy in Jakarta until the end of 2018 is expected to decrease from 3% to 4%. Although in the first half of this year, the rental demand continues to increase.

The real estate research institute, Colliers International Indonesia estimates that the increase in rental demand will continue until the second half. However, the occupancy is expected to decrease as the vacancy rate of the offices in Jakarta is still quite significant.

Total number of vacant offices in Jakarta until the second quarter of 2018: 2 million square meters. The office occupancy rate in the Central Business District (CBD) of Jakarta will fall to 79% by the end of the year, the lowest in recent years.

"While outside the CBD is still 81%, there is a decrease of 2% to 2.5% from the previous year," says Ferry Salanto, Property Consultant Senior Associate Director Indonesia Necklaces, Wednesday (4/7).

The office problems in Jakarta according to Ferry is still the same as the excess supply. Although there is currently no project of new projects, the total increase in supply from 2018 to 2021 projects in progress will reach 11.5 million m², of which 7 million m² in the CBD area.

While Colliers sees the new development should start growing again in 2021-2023 as foreign investors see the office market in this year come back to promise.

million. Ferry added that the demand for office space is also attributable to the relocation of tenants who move from one office to the other. So according to him will support the occupation of many offices.

The current office market is still dominated by the tenants market so landlords will offer lighter leases and more flexible contracts to offer more attractive rental options to tenants. "We see that coworking activity will still grow and become the main driver of pekantoran activity," said Mr Ferry (19659003). Only, the request was not in line with the increase in rental rates. Ferry said that today 's developers are focusing on how to maintain occupancy so as not to risk chance.

Necklaces estimates that the price of the office rental offer in Jakarta will increase by 1%. "But it is an estimate of the price of the offer, if the price of our transaction could fall from 20% to 30% over last year, but it is difficult to trace the price of the transaction.

REAL ESTATE INDUSTRY